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Home My WebLink About2015 Winter SaratoganSAR ATOGANthe Winter 2016 Saratoga was founded on the philosophy that City government should be small and effi cient, yet provide essential services to its residents. The City’s focus is to ensure public safety, maintain the City’s roads and infrastructure, and proactively oversee development. These values have held fi rm through the years and contributed toward making Saratoga the beautiful, safe, and desirable community that residents enjoy calling home. As the local economy has improved, increasing revenues have provided the ability to address long-term liabilities and infrastructure needs. Each year, the City dedicates funding to street resurfacing. This year, the City was able to increase street resurfacing funding by almost 30%. Read more about road and infrastructure improvements on Page 3. Due in part to the strong economy and the City’s fi nancial prudence, the Saratoga City Council paid down half of the City’s unfunded employee pension liabilities. That decision is expected to save Saratoga millions of dollars in future interest payments. Read more on this topic on Page 4. Investing in Tomorrow In This Issue This issue of Saratoga’s quarterly newsletter focuses on the City’s budget and how it affects residents’ daily lives, such as paying for public safety services, as well as road and infrastructure upgrades. Also read about holiday safety tips and upcoming community events. When you’re done, fl ip this magazine over to the Recreation Activity Guide and discover all the fun classes and camps being offered through the Saratoga Recreation Department. Happy reading! Many thefts are crimes of opportunity. Don’t make it easy for criminals. Never leave valuables in your car. Keep track of crime in your area. Visit www.crimereports.com. Be notifi ed when emergencies happen in your area. Sign up at www.sccgov.org/sites/alertscc. Quick Tip from Capt. Rick Saratoga’s Budget at a Glance Sheri’s Services 26.7% Salaries & Benets 37.7% Operational Support 13.2% Consultant & Contract Services 12.0% Community Grants & Events 1.2% Meetings, Events & Training 0.7% Fees & Charges 4.2% Materials & Supplies 1.5% General Fund Expenditures: $18.5 Million Net of transfers UAL 3.7% Saratoga’s General Fund budget provides for the City’s primary operations. Revenues—including taxes, building permits, development fees, and facility rental fees—are used to deliver City services. The charts below represent the FY 2015/16 revenue and expenditure budgets by category. Sales Tax 5.5% Franchise Fees 11.4% Property Tax 54.6% General Fund Revenue Sources: $19.2 Million Fees, Licenses & Permits 7.7% Charge For Services 9.6% Local Taxes, Interest & Rentals 11.2% Net of transfers Schools (Includes ERAF Shift)65.0% Santa Clara County 13.0% FireDistrict 10.2% OtherSpecial Districts 4.7% Property Tax is Saratoga’s largest revenue source. However, Saratoga is a “low tax” city, meaning it receives the minimum allocation allowed by State law. Due to this low-tax status, City services are limited. Saratoga operates with a small staff and many functions are delivered by contract. As the below illustration shows, the City receives just slightly more than a nickel out of every Property Tax dollar residents pay. Good News Alert! Due to special legislation 30 years ago, Saratoga and three other West Valley cities did not receive their full Property Tax allocation. Senate Bill 107, passed in September 2015, eliminated this discrepancy. The property tax takeaway will be eliminated over a fi ve- year phase-in period, with Saratoga eventually receiving an additional $650,000 per year. City ofSaratoga5.5%Saratoga Property Tax Distribution *Agency distribution varies by property tax district SantaClaraValleyWater District 1.6% Infrastructure Improvements The City of Saratoga has an ongoing process through which it identifies, prioritizes, and develops a multi- year plan for major capital projects. “Capital Improvement Plan” projects enhance the quality of life in Saratoga by upgrading the City’s roadways, parks, facilities, and other infrastructure. These projects are approved by the City Council during the budget process and many are funded through grants. Turf Reduction Program Ongoing The City’s Public Works Department implemented a turf reduction program in 2007. Since then approximately 140,000 square feet of grass has been pulled from Saratoga’s parks and replaced with drought tolerant plants. The City has identified about 1.5 acres of additional grass area at six parks and three City-owned facilities that will be converted to drought tolerant landscape. This is expected to be completed by the end of 2016. Prospect Road Improvement Project Construction Begins: Summer 2016 This project will occur along a 1.9-mile section of Prospect Road between Saratoga-Sunnyvale Road and Lawrence Expressway. Upgrades include median landscaping, ADA-compliant ramps, sidewalks, bus shelters, and bicycle detector loops. About 88% of this $4.75 million project will be paid for through grant funding. Quito Road Bridges Project Construction Begins: Summer 2016 This project will replace two bridges on Quito Road that pass over San Tomas Creek along the border of Saratoga and Los Gatos. The 100-year-old bridges no longer meet safety standards. The $4.9 million project will be mostly funded through a $4.1 million Federal Government Bridge Replacement Grant with allocated grant match contributions from Saratoga, Los Gatos, and Santa Clara Valley Water District. Highway 9 Safety Improvement Project - Phase IV Construction Begins: Summer 2016 Phase IV will continue bicycle and pedestrian safety improvements along Highway 9 from Saratoga to Los Gatos. During this phase, pedestrian pathways, retaining walls, and pedestrian safety improvements will be constructed from Fruitvale Avenue in Saratoga to Grand View Avenue in Monte Sereno. Street Resurfacing and Maintenance Project Ongoing There is a total of 135 miles of roadway in the City of Saratoga. Resurfacing streets on a regular basis extends the life of roadways and minimizes the need for larger and more costly maintenance in the future. Grants help resurface major arterials while the City relies on Gas Tax Revenue to pay for resurfacing residential streets. Street resurfacing funding has been increased this year by 30%. Quarry Park Master Plan Implementation - Phase I Completed! The City opened up the 64-acre park to the public in October 2015. Phase I included initial improvements to the property, such as a gravel parking lot, clearing paths to connect with mid-level picnic areas, restrooms, gates, and signage. For more information on Saratoga Quarry Park, visit www.saratoga.ca.us/quarrypark. For more detailed information on these and other projects, visit www.saratoga.ca.us/currentprojects. To learn more about The Saratogan, make comments, suggest story ideas, or just ask a question, contact Brian Babcock at bbabcock@saratoga.ca.us or 408.868.1275. You can also find The Saratogan online and sign up for email alerts at http://bit.ly/1MmTHBy. C I T Y o f S ARATO G A CALIFO R N I A1956 Upcoming Community Events The holidays unfortunately coincide with an increase in property crimes. So the Santa Clara County Sheriff’s Office would like to offer some security tips to help keep your holidays jolly: • Holiday Shopping – Criminals will wait in parking lots for shoppers to drop off their purchases in their cars and then continue shopping. This leaves vehicles more susceptible to burglary. A better choice would be to drop off items at home. If you cannot do that, consider moving your car to another section of the parking lot. • Protecting Your Wallet – While in stores, be careful with your credit cards and carry only those you intend to use. When using an ATM, safeguard your PIN numbers and be aware of your surroundings. Many criminals will look over your shoulder to obtain your information; and some ATM machines do not automatically exit your account. Make sure your transactions are complete before you leave. • Online Orders – For those who shop online, most package deliveries are placed on your porch, which is fine if someone is home. If not, your parcels may be taken by a burglar. Some criminals have been known to follow delivery trucks to pick and choose targeted homes. Having someone there, perhaps even a neighbor, to accept your packages is ideal. If no one is available, consider having it delivered elsewhere, such as a shipping center or your workplace. Holiday Tree Lighting and Wine Stroll Friday, Nov. 27, at 5 p.m. Big Basin Way www.saratoga.ca.us Silicon Valley Turkey Trot Thursday, Nov. 26 Downtown San Jose svturkeytrot.com Holiday Safety Tips Swearing In of New Mayor and Vice Mayor Wednesday, Dec. 2, 7 p.m. Saratoga Civic Theater Ask Our Staff featuring Mary Furey Have a question? Send your question(s) to bbabcock@saratoga.ca.us or (408) 868-1275. Q: I’ve read that cities throughout California are facing dire financial trouble because of rising pension costs. How will this affect the City of Saratoga? A: Pension costs are increasing, primarily due to the underfunding of benefits in prior years. Underfunding resulted from CalPERS revising expectations for long-term investment returns, losses from the Great Recession, and demographic assumption changes. Employers must now pay for unfunded pension obligations in addition to current pension costs. Saratoga’s City Council prudently chose to pay off almost half of the unfunded obligation immediately. The Council also decided to increase annual payment amounts to reduce the overall cost of the liability, which is similar to paying off high-interest credit cards as soon as possible. This strategy is expected to save the City approximately $7.3 million dollars (a 62% reduction in cost) and has helped to ensure Saratoga’s future fiscal stability. For more information on this topic, read the City Manager’s letter in the Fiscal Year 2015/16 budget at www.saratoga.ca.us/budget. Mary Furey is the Finance and Administrative Services Director for the City of Saratoga. She is responsible for overseeing Finance, Human Resources, and Information Technology. &Q A